Malaysia's palm oil supply recorded its biggest drop in seven months, falling 6.32% at the end of October to 1.88 million metric tonnes.
The decline was driven by a surprising surge in exports, while production fell followed by rising domestic consumption.
Crude palm oil production fell 1.35% to 1.80 million tonnes, but exports jumped 11.07% to 1.73 million tonnes.
In addition, domestic consumption recorded a sharp jump, increasing 50% to 208,418 tons.
This drop in supply has had a major impact on palm oil prices, which are currently at their highest level in more than two years.
However, if demand continues to decline, palm oil stocks may rise again in November.
Although palm oil prices have been slightly affected, the latest data shows that global demand remains strong, signaling that the palm market still has the potential to continue to grow.
